Dividend stocks can be some of the best ways to create easy passive income. And if you choose the right one, that income can even come on a monthly basis! The passive income can then go on to be used to even help you pay for groceries, car payments, bills — you name it.
However, another way to use that income is to get rich. Right now, you have a once-in-a-decade opportunity to do just that.
The downturn
This is a once-in-a-decade opportunity due to the recent downturn. About once a decade, Canadian investors (and indeed the world over) tend to go through a recession or economic downturn. This recently happened, of course, with interest rates and inflation rising, creating a situation where investors needed more of their money and were investing less.
However, as you are also likely aware, the key interest rate just dropped by the Bank of Canada. So, now, we’re seeing the light at the end of what’s felt like a very long tunnel. After over four years, the first rate cut has come down. And there seem to be more in the fairly near future.
This means time is running out to get a deal on companies that haven’t done well during the last few years — companies that fell during the recession and have been struggling to get back up. Yet there are far fewer that offer both a steal as well as dividend income.
Where to invest
If you want to make a smart investment, look at companies that offer dividends, stability, and growth for the future. One area that I would consider first and foremost is those offering loans.
With more cash on hand, Canadians will be able to put their cash to work for them once more. They’ll be able to take out mortgages, invest in their homes and businesses, and take out loans for a variety of other reasons as well.
That’s why goeasy (TSX:GSY) should be a strong option to consider. Granted, the company has actually done quite well! Canadians who needed a loan in the past went to the non-prime lender for the best option. Now, with more cash on hand, goeasy stock should see even more loan originations come its way. And that’s on top of its already record-setting performance.
Getting rich
goeasy stock has seen shares rise by 70% in the last year alone. And that’s not even coming to all-time highs! What’s more, it still trades at just 12.47 times earnings and 2.81 times book value. In short, it’s in a financially sound position, with more growth on the way.
Then there’s goeasy stock’s dividend. It currently offers a 2.52% dividend yield, which is higher than its trailing five-year average of 2.18%. Even better? It has an incredibly strong payout ratio of just 27%. So, that dividend is not just safe; it could increase in the near future.
Instead of using that dividend income to put towards your cash flow, a lower interest rate might mean you can invest it right back into the stock. This compounding interest will allow you to see your shares in goeasy stock increase and create a bigger and bigger portfolio. So, don’t wait on this opportunity any longer. goeasy stock has already been climbing, but once we’re out of this downturn, it could provide you with a once-in-a-decade chance to get rich — right now.
